Looking back at the Fed's previous interest rate cut cycles, each 50 basis point rate cut was almost always accompanied by a major crisis. From the 2001 tech bubble, the 2007 financial crisis to the 2020 epidemic, the Fed often started an easing cycle with a large interest rate cut when responding to emergency economic situations.

After a lapse of 4 years, the Fed directly cut interest rates by 50bp again. The market may be dealing with a potential major crisis. How will the market evolve next? Let's wait and see!

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Historically, the impact of interest rate cuts:

1. Improved liquidity: interest rate cuts usually release more funds and increase market liquidity;

2. Lower borrowing costs: As interest rates fall, borrowing costs for companies and individuals will also decrease;

3. Increased risk appetite: In a low interest rate environment, investors may be more willing to take risks and seek higher returns;

4. Rising cryptocurrency prices: interest rate cuts may bring upward momentum to the cryptocurrency market.#BTC#ETH

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